Powerline - Summer 2020

Looking at the trend

I recently attended an online seminar where Simon Sinek (the bloke who wrote “Start with Why” - terrific book and well worth reading) presented on organisations and their mindsets. One of the key points he made was about concentrating on the trend, not at any particular result at a single point in time.

Initially it is easy to disregard this as simple logic, but in reality, there is a lot of wisdom in these turbulent times about looking at the macro events rather than the micro. For instance, it is easy to see that sales are down this week, but then when we look at the trend for the month (or even the last couple of months) then we can see the actual results, and the real picture of what is happening. That is not to say we ignore the detail as it happens each day, but rather to compare it to what the trend is also telling you.

We are moving into our first Christmas period under a pandemic and there are more questions than answers. Will people still visit retail stores?  Will on-line shopping become more normal?  Will there be any effect in regional areas? What will the delays in my supply chain be over this period?  Will the borders opening up be a good or bad thing?

In times of uncertainty and unanswered questions there are some definite benefits to looking at the recent and long-term trends:

  • Future planning is made easier when we look at the longer-term trend in the business
  • Stress less about the daily results, and focus more on the longer-term results – giving your mental health a break (or at least putting it in context)
  • We are in a pandemic; things are changing daily, and it is too easy to get caught up in the moment
  • This year is going to be hard to compare to prior years; by looking at the trend we can compare the short-term trend versus the long-term trend to better estimate the future.

Now you are converted to examining trends rather than daily results, there are a couple of things to start doing:

  • Planning – 2020 has been a vastly different year, and 2021 will throw up additional challenges as well. Now is the time to start planning for future success by understanding the current trends in your business.
  • Cashflow – with the new plan, it is time to map this out in terms of cash impact into the business, and what actions you need to take now to propel into the future.
  • Production cycles – start measuring the trend against the last few years. What is similar, what has changed? How has performance on your team and your industry been?
  • Reporting – start getting your daily and trend results automated so the right information over the right time span is delivered to you automatically.

So next time you look at results for the day and start wondering what is going on, remember to look at the trend and get started on that plan!

The Power Tynan team are here to help you with building a better business into 2021.

At Power Tynan, we see business growth as the number one opportunity for our clients, as well as one of the biggest challenges they face, coming into 2021.  2020 was an interesting year and we survived so let’s make it count and look towards the future.

That is why we have developed a unique business learning suite to support, grow and assist businesses to harness their full growth potential.   Every business is different but we all experience similar issues so this is a great opportunity to get together with your peers, in different industries and work on some insights for your own business. 

We have engaged Mike Boyle who is an expert in Mindshop in Strategy Facilitation as well as a Sales Scientist so has years of experience in marketing and sales.  Mike has been running these types of groups across Australia and New Zealand for over 13 years, so this is a great opportunity for us all to work with someone with this type of experience and expand our holistic knowledge.

Power Tynan Director’s Circle

The Power Tynan Director’s Circle is a community for business owners and directors with ambitions to take it to the next level. It’s a space for sharing, learning and growing together with your peers.

Membership to this unique business development club is restricted to ten carefully selected businesses run by ‘like-minded’ strategic business leaders.

How is it delivered?

❖ Quarterly peer forums (group workshops)

❖ Cloud based business resource centre (including insights, tools, diagnostics and bite-sized learning)

❖ 24/7 community support and feedback

❖ Exclusive access to member-only events

❖ Annual strategy challenge

❖ Quarterly one-to-one accredited leadership coaching

 

Power Tynan Growth Club

A ‘tribe’ of like-minded SME’s wanting to grow.

The Power Tynan Growth Club can assist you in addressing business issues, unlocking your true leadership potential to deliver long-term sustainable change and development - personally and professionally.

Membership to this unique business development club is restricted to 25 carefully selected businesses run by ‘like-minded’ entrepreneurs.

Why join?

❖ Are you after high quality engagement?

Join like-minded sales and business leaders in sessions facilitated by fully accredited advisors and benefit from all the resources and insights they provide.

❖ Do you require unbiased, confidential support?

Experience a supportive environment where you can address burning issues with full confidence to ensure ongoing professional and personal development.

 

If you’re interested in any of the above, please let us know so we can organise a one-on-one to discuss your needs.

 

Earlier this year, the Power Tynan Charitable Trust pledged $1,500 to the Lachlan Hughes Foundation, and we finally got to have this presentation!

Lachlan Hughes was tragically lost in an on-farm accident in October 2018. He had a passion for regenerative agriculture and educating young people about rebuilding our soils, and believed that it is possible to rebuild our soils and increase their sustainable productive capacity to withstand the variables of rainfall, and that this in turn would revitalise our rural communities and improve the economic sustainability of the industry.

His parents Philip and Adele, his wife Anna and their children, together with his younger brother Alister and his wife Jules intend to carry on Lachlan’s dreams. The initial goal of the Lachlan Hughes Foundation is to continue to develop his vision by linking land managers with regenerative agriculture professionals with a scholarship and mentoring program.

For further information regarding the Lachlan Hughes Foundation, or to donate to this wonderful initiative, please visit https://www.lachlanhughesfoundation.org.au/

Our Leasing & Finance team are busy with applications for the popular HomeBuilder grant, as the deadline to apply for this is looming!

The HomeBuilder grant provides individuals and couples with $25,000 towards building or buying a new home or substantially renovating an existing home that they will own and occupy.

Eligibility criteria:

These criteria apply to all persons, whether applying as an individual or as part of a couple.

  • You must not have previously received a HomeBuilder grant in any State or Territory of Australia.
  • You must be at least 18 years of age. (Companies and trusts cannot apply.)
  • You must be an Australian citizen at the time you apply.
  • Your 2018–19 or 2019-20 annual taxable income must be below:
    • $125,000 for an individual
      or
    • $200,000 for a couple.
  • You will be the registered owner on the title.
  • The home will be your principal place of residence after completion or settlement.
  • The contract is signed between 4 June 2020 and 31 December 2020 to:
    • buy an off-the plan or new home valued at $750,000 or less and construction had not started before 4 June 2020
      or
    • build a new home where the build amount and the value of the land (including any existing structures) is $750,000 or less
      or
    • substantially renovate an existing home, where
      • renovations cost between $150,000 and $750,000
        and
      • value of property (home and land before renovation) is less than $1.5 million

After you have signed your contract, there is a 2-step process to follow with strict timeframes.

Step 1: Apply by 31 December 2020. Late applications are not accepted.

Step 2: Provide all supporting evidence by 31 October 2022. Documents supplied after this date will not be accepted.

*** UPDATE ***

On 29 November 2020, the Government announced an extension to the HomeBuilder program to 31 March 2021.

Changes to the HomeBuilder program include:

  • A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
  • An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
  • An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
  • An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
    • The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
  • A change in licensing requirements and registration for builders and developers, as below:
    • Where an eligible contract is signed on or after 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
    • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

Other than the above, the existing program criteria apply. That is, the other existing eligibility criteria remain in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.

If you are interested in building, please contact Dan or Kylie today as we need to register your interest before 31 December 2020.

Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn* to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use. This means that an asset’s cost will be fully deductible in the year it’s installed ready for use, rather than being claimed over the asset’s life. And, there is no cap on the cost of the asset.

When it comes to second-hand assets the rules are a bit different depending on the size of the business. Businesses with an aggregated turnover under $50 million can claim an immediate deduction for the cost of second-hand assets under the new measures.

Businesses with aggregated annual turnover between $50 million and $500 million can still deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by 31 December 2020 under the existing enhanced instant asset write-off. Businesses that hold assets eligible for the enhanced $150,000 instant asset write-off will have an extra six months, until 30 June 2021, to first use or install those assets.

For small business entities that have assets in a general pool the changes seek to ensure that pool balances are completely written-off for tax purposes in the 2021 and 2022 income years.

These super-charged immediate deduction rules tie into the existing instant asset write-off for businesses with a turnover under $500 million (summarised below).

The instant asset write-off only applies to certain depreciable assets. There are some assets, like horticultural plants, capital works (building construction costs, etc.) and certain intangible assets that don’t qualify for the new rules.

If your business will make a tax profit this year, this measure is likely to reduce the taxable income of the business for the year and it may be possible to vary upcoming PAYG instalments to improve cash flow. If your business operates through a company and will make a tax loss, you might be able to use the loss to offset tax paid in previous years (see Refunds for Tax Losses article). Alternatively, tax losses can generally be carried forward to a future year.

An incredible year for investment markets. Starting with a recession and then ending with record positive economic growth numbers in the second half of the year with November being the best month for the Australian share market since 1988. 

The combination of employment support payments, cutting of interest rates and tax incentives have resulted in most countries being on the way to recovering from their sharp depression-like contractions in economic activity in the first half of 2020. Shares in technology, consumer discretionary, communications and healthcare businesses have been winners while banks, travel and real estate trusts have lagged behind this year.

Optimism in the outlook has been boosted by further developments on COVID-19 vaccines as well as the increasing likelihood of an orderly transition of the US presidency. In Australia consumer confidence has reached its highest level since February 2020. Although COVID-19 case numbers remain very high, over the coming months we anticipate more progress on the virus vaccine front and steady progress towards business reopening, unemployment reducing and economies strengthening.

We wish all our clients a peaceful and safe festive season and we hope next year will be less interesting than 2020! 

Has your business grown over recent years and you are not sure if you are operating in the right entity?

Are you worried about asset protection?

Is your average tax rate higher than 26%?

The Queensland Office of State Revenue has introduced an important exemption relating to small business restructures removing a considerable barrier to restructuring sole traders, partnerships and discretionary trusts into private companies.

Eligibility

This announcement could assist those small businesses who operate in one of the following structures:

  • Sole traders;
  • Partnerships;
  • Discretionary trusts

In addition to above, the following conditions apply:

  • Operating a business in Queensland;
  • The business turnover is less than $5,000,000;
  • Dutiable value of $10,000,000 or less;
  • Assets actively used to carry on business.

How this works

For example, a partnership operating a business with the following:

  • A turnover of $2,000,000 a year;
  • Operate within an industry with a high risk of workplace accidents; and
  • Owned by two individual partners 50/50.

In this example, this business would be able to utilise this opportunity to restructure into a company as this may provide them with more asset protection and potentially a lower tax liability as they would have access to a corporate tax rate. 

Additionally, if they were now operating in a company this may entitle them to apply for grants and subsidies more easily that can assist their business to grow.

In this example to be eligible for the exemption, both partners would be directors and shareholders of the newly incorporated company in proportion to their partnership ownership.

Opportunity

This announcement provides an unprecedented opportunity for businesses to be able to reassess if they are operating in the best structure. 

If you would like to discuss this new exemption please contact our office and we will be happy to assist.

Our Leasing & Finance king, Dan Cuthbert, recently celebrated 20 years with Power Tynan!

 

Education

I didn’t do that great at high school, I was more there for the social stuff! I did my primary schooling at Albany Creek State School and completed Grade 12 at Pine Rivers State High School.  As part of getting licenced to be a finance broker, I have done the necessary Cert IV and Diploma. My life experiences have taught me more than any school room or university ever could, which I think is more important these days to some degree.

 

Hobbies and Interests

Triathlons, community service, camping and caravanning, and hopefully soon the ability to travel overseas! For those that know me well, they would agree I need to focus more on the triathlons at present (or at least the training!)

 

When you were a kid, what did you want to be when you grow up?

I always wanted to be an architect or work for a bank - looks like the banking side of it won!

 

Why did you apply for a job at PT?

In 2000, I was the manager at the Westpac Bank in Stanthorpe when they announced that my branch (along with 40 others in Queensland) would be closing that year as part of the banks moving to an in-store model. I was offered a transfer, but my family and I wanted to stay in Stanthorpe. Power Tynan offered me a job and the rest is history. I had 19 years at Westpac and proud to say now 20 years at Power Tynan.

 

What do you love about working at PT?

I will forever be grateful for the opportunity PT has given me, and the chance to stay in Stanthorpe (although an office at the Sunny Coast would be good!) Whilst we work hard, we have a great leadership team and it’s all the other bits and pieces we can offer not only our clients but our team members as well that make PT unique and a great place to work. The PT team always offer great support, plenty of laughs and I have had the opportunity to work with a diverse range of people and some real characters. It would be remiss of me not to mention the various people who have worked directly for me in the Leasing & Finance team. It is those people who determine a large part of what sort of work life you have and I am lucky to have two of the best at present. The other part that’s great is the ability to help clients achieve their dreams. This has also been very rewarding and the fact they come back again and again to use our service is a great feeling.

 

What is one thing most people wouldn’t know about you?

In 2017 I completed the Port Macquarie Ironman and have the tattoo to prove it. An amazing feeling and one of the best days of my life (outside of getting married and having kids). Don’t tell my boss or my wife, but I really need to do another Ironman one day!

Earlier this quarter we were visited by Paul Best, to talk about the wonderful work of the Murdoch Children's Research Institute.

Paul and his wife Kara's world changed dramatically when their daughter Adelaide received a diagnosis of BPAN (more elaborately known as Beta-Propeller Protein-Associated Neuro Degeneration), an incurable rare brain disorder caused by a spelling mistake on her WDR45 gene.

BPAN was only identified around six years ago, and there are only 13 diagnosed cases in Australia and potentially around 500 world-wide. This disorder causes global developmental delay in childhood which becomes progressive in early adulthood. It also leads to Parkinsons, Dystonia, vision loss and Alzheimers.

Remarkable advances have been made in pursuit of a cure by one incredible family in Melbourne who have worked with an anonymous donor and a team at the Murdoch Children’s Research Institute in Melbourne (MCRI) to establish a dedicated research program devoted to addressing the cell degeneration which causes such a catastrophic outcome for those with BPAN.

This research has the capacity to benefit many other neurological disorders such as Motor Neurone Disease and Parkinson’s Disease.

To continue with year 2 and year 3 of this research program, additional funds are required. The Power Tynan Charitable Trust recently donated $1,500 to this very worthy cause.

Donations can be made at https://www.mcri.edu.au/bpandonate

Any contribution is very much appreciated, and may well fund that hour of lab work that leads to the identification of a cure.

Thank you Paul for sharing your story ❤️

 

If your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits.

In the 2020-21 Federal Budget, the Government announced that businesses with turnover under $5bn* will be able to offset any losses made between 2019-20 and 2021-22 against previously taxed profits between 2018-19 and 2020-21.

The loss carry-back rules enable a company to offset tax losses against profits taxed in a previous year, generating a refundable tax offset. The amount carried back can be no more than the earlier taxed profits, limiting the refund to the company’s tax liabilities in the profitable years. The company can choose to carry-back a loss or carry it forward. That is, tax losses for the 2019-20, 2020-21 or 2021-22 income years can either be:

  • Carried forward and deducted against income derived in later income years; or
  • Carried back against income of earlier income years as far back as the 2018-19 income year to produce a refundable tax offset.

Previously, tax losses could only be carried forward and deducted against income in later income years.

This is not the first time that carry-back losses have been allowed. The loss carry-back rules were introduced some years ago by the Gillard government for the 2012-13 year, then repealed.

The loss carry-back rules also interact with the Government’s Budget measure allowing immediate expensing of investments in capital assets (See Tax deductions for investing in your business). The new investment will generate significant tax losses in some cases which can then be carried back to generate cash refunds for eligible companies.

What entities are eligible to carry-back losses?

Corporate tax entities are eligible to carry-back losses - a company, a corporate limited partnership, or a public trading trust - BUT only if the entity has lodged an income tax return for the current year and each of the five years immediately preceding it. If your company has not kept up to date with its reporting obligations, it might not be able to use the new rules.

Claiming the refundable tax offset

Businesses will need to elect to utilise their carry-back losses when they lodge their 2020-21 and 2021-22 tax returns. That is, even if the company made a loss in the 2019-20 year, it cannot claim that loss until the 2020-21 tax return is lodged.

For the 2020-21 income year, a loss carry-back tax offset may be available to a company if:

  • It has a tax loss in the 2019-20 income year and/or the 2020-21 income year;
  • It has an income tax liability in the 2018-19 income year and/or the 2019-20 income year; and
  • For the 2020-21 income year and each of the previous five income years, either the entity has lodged an income tax return; the entity was not required to lodge a return; or the Commissioner has made an assessment of the entity’s income tax.

The carry-back cannot generate a franking account deficit. That is, the refund is further limited by the company’s franking account balance.

The 2020-21 Budget delivered a range of incentives for business to invest. If you would like us to review your position and the tax impact of any investments you are contemplating, please call us and we can assist you to get the best possible outcome.

Homeless for a Night Sleepout

Members of the PT Team slept out on the streets of Toowoomba (during winter!!) as part of the Homeless for a Night sleepout, raising awareness of homelessness within our community as well as much needed funds for the Basement Soup Kitchen.

Our team raised a whopping $2,285, smashing our target of $1,200!

Now more than ever, the Basement Soup Kitchen needs help to provide assistance and support to the growing number of people experiencing homelessness and the many men, women and children who have been negatively impacted by COVID-19 and are struggling to pay their rent or put food on the table.

It’s not too late to donate! To support this very worthy cause, visit https://homelessforaweek.com.au/sleepout/participants/power-tynan/

 

 

 

 

 

Baby News

Congratulations to Katherine Nguyen of our Toowoomba office and her partner Andrew, who welcome little Vincent on 8th September.

 

 

 

 

 

 

 

Flex Your True Colours

Members of the PT team recently donated blood as part of the Australian Red Cross Lifeblood True Colours campaign.

Six Aussie artists have created a new range of bandages for donors to wear post-donation.

With unique designs in a range of colours, these bandages were available to anyone who donated at Lifeblood donor centres until the end of November 2020.

With more than 4,400 donations required every day, the need for blood never stops.

To book a donation appointment, or for more information about the campaign, please visit https://www.donateblood.com.au/true-colours

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Scavenger Hunt Turned Proposal

Congratulations to Nathan, who popped the question to his partner Tess during a family scavenger hunt. Well done on pulling off such a surprise!

 

Wedding Bells

Congratulations to Su-Mei and her partner Matt, who were married on November 9th.

We wish you both a lifetime of love and happiness as you start this next chapter of your lives together as husband and wife.

 

 

State of Origin

The team took part in some State of Origin fun throughout the month of November, wearing their colours to support their team as well as trying their luck at the Joey Johns Bullet Ball Competition - all to raise funds for the Power Tynan Charitable Trust.

QUEENSLANDER!!!!!

 

Focus HR Business Excellence Awards

We are thrilled to be named as a finalist in the Employer of Choice category for the Focus HR Business Excellence Awards for 2020.

These awards focus on the business community’s contribution to the economic vitality and social fabric of our region, and is an event to recognise and celebrate the leaders and innovators within our local business community.

The winners will be announced at a black-tie event on Saturday 12th December - watch this space!

      

Christmas Trading Hours

Our Roma office will close from 21st December, and our Stanthorpe & Toowoomba offices will close from 5pm on Tuesday 22nd December, with all offices re-opening at 8.30am on Monday 11th January.